On October 28, China signed an expanded version of a free trade agreement with the Association of Southeast Asian Nations (ASEAN) in Malaysia, during the ASEAN summit. This association includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Timor-Leste, and Vietnam. It constitutes a regional grouping of 11 countries in Southeast Asia aiming to promote economic and security cooperation among them.
The framework agreement between China and ASEAN was first signed in 2002, laying the foundation for the creation of the ASEAN–China Free Trade Area (ACFTA), which came into force in 2010. This trade area covers a market of approximately 2 billion people and substantially lowers tariff barriers between member states and China. Through this trade area, China–ASEAN trade relations have increased from $235.5 billion in 2010 to nearly $1 trillion last year.
China’s representative during the 2025 agreement negotiations was China’s Premier Li Qiang, who described this agreement as an alternative to Donald Trump’s protectionist policies and increasing trade barriers. He said during his speech that “Pursuing confrontation instead of solidarity brings no benefit”, “Unilateralism and protectionism have seriously impacted the global economic and trade order, while external forces are increasing their interference in the region, many countries have been unreasonably subjected to high tariffs”, “by relying on each other and coordinating our actions, we can safeguard our legitimate rights and interests.” He also addressed ASEAN members as “good neighbors and good brothers that are close in geography, culture and sentiment.”
However, at the same time, China asserts its control over nearly the entire South China Sea and has competing claims over it with Vietnam, the Philippines, Malaysia, and Brunei. The situation is more complex and strained between the Philippines and China. In 2013, the Philippines filed a case against China with the Permanent Court of Arbitration, questioning China’s broad claims over the South China Sea, and in 2016, the tribunal ruled that China’s claims to the South China Sea have no legal basis, which China immediately rejected as void.
The situation escalated this month as well, as the Philippine Maritime Council blamed Chinese maritime forces for ramming a Filipino vessel near Thitu Island. During the ASEAN Chinese Premier Li Qiang’s remarks about unity and friendship between China and ASEAN members were met with skepticism by the Philippine president, who criticized China’s activities again.
